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UC-NRLF 


C    2    77E    bED 


X 


REPORT 


EXHIBITING  THE  EXPERIENCE 


OF    THE 


MUTUAL  LIFE  INSURANCE  COMPANY 


NEW-YORK, 


FOIi 


FIFTEEN  YEARS  ENDING  FEBRUARY  FIRST,  1858. 

L  I  H  U  A  ii  L      |, 

UNIVKHSITY   OF  j 

,  CALIFOKXIA.  > 


PRINTED    BY    ORDER    OF    THE    BOA.RD    OF    TRUSTEES: 


NEW-YORK,   NOVEMBER,  1859. 


/^  °i  S/ 


TABLE   SHOWING   THE   PROGRESS   OF  THE   COMPANY. 


No.  of  Policies  In  force 

on  the 

first  of  February  in 

Amount 
assured  thereby. 

Assets. 

No.  of  Policiea  In  force 

on  the 

first  of  February  in 

Amount 
assured  thereby. 

Assets. 

1844 
1845 
1846 
1847 
1848 
1849 
1850 
1851 

462 
971 
1,856 
2,616 
3,620 
4,473 
5,799 
6,242 

1,611,718 

12,457,709 
14,969,481 
15,660,476 

$32,311   05 

97,471   36 

216,980  28 

325,005  31 

551,575  27 

758,473  14 

1,000,439  62 

1,298,388  46 

1852 
1853 
1854 
1855 
1856 
1857 
1858 
1859 

6,512 
6,797 
7,373 
8,118 
8,778 
9,794 
10,390 
10,993 

16,406,805 
17,509,773 
19,660,927 
22,182,633 
24,904,110 
28,024,012 
30,481,302 
32,575,099 

$1,627,655  56 
2,060,649  30 
2,543,301   611 
2,850,077  56 
3,309,085   80 
3,787,945  76 
4,685,908  95 
5,374,933  42 

BOARD    OF    TRUSTEES. 


Frederick  S.  Wixstox, 
Joiix  V.  L.  Prutn, 
William  Moore, 
Joseph  Bluxt, 
Robert  H.  M'Curdy, 
Isaac  Green  Pearson, 
Samuel  M,  Cornell, 
John  H.  Swift, 
Wm.  J.  Bunker, 
William  Betis, 
John  P.  Yelveeton, 
John  Wadsworth, 


Alfred  Edwards, 
Nathaniel  Hatden, 
John  M.  Stuart, 
George  R.  Clark, 
Sam'l  E.  Speoulls, 
Lucius  Robinson, 
W.  Smith  Beown, 
Richard  Patrick, 
William  P.  Popiiam, 
Lycuegus  Edgeeton, 
Ezra  Wheeler, 


Cephas  H.  Norton, 
Hamlin  Blake, 
Samuel  D.  Babcock, 
Millard  Fillmore, 
David  Hoadley, 
Henry  A.  Smythe, 
William  V.  Brady, 
W.  E.  Dodge, 
George  S.  Coe, 
Wm.  K.  Strong, 
Alex.  W.  Bradford. 


FREDERICK   S.   WINSTON,  President. 


Secretarif,  Isaac  Abbatt.  Actuary,  Sheppard  Romans. 

Medical  Examiner,  Mintuen  Post,  M.D. 


UNIVERSITY   OF 

CALIFOliXIA. 


TO  THE  BOARD  OF  TRUSTEES. 


Gentlemen  : 

In  presenting  tlie  Financial  and  Mortuary  Experience  of  this  Company 
during  the  first  fifteen  years  of  its  existence,  as  developed  by  the  Actuary, 
I  take  occasion  to  state  some  facts  connected  with  its  history. 

The  first  Actuary  of  this  Company,  the  late  Charles  Gill,  demonstrated 
its  Experience  upon  a  portion  of  its  business  to  the  period  of  its  second 
di^ddend  in  1853.     (See  his  Eeports  of  1851  and  1853.) 

These  documents,  marked  by  the  general  ability  which  distinguished  his 
acts,  embraced  but  a  portion  of  the  business  of  the  Company,  and  though 
valuable  as  a  commencement,  yet  their  scope,  both  as  to  extent  of  observa- 
tion and  the  subjects  embraced,  was  necessarily  too  limited  to  fully  meet  our 
requirements. 

Our  present  Actuary,  Mr.  Homansj  from  his  advanced  point  of  observ- 
ation, has  not  only  taken  up,  and  brought  down  to  the  date  of  his  state- 
ment, the  line  of  facts  contained  in  the  former  Keport,  but  he  has  enlarged 
the  basis  of  demonstration,  developing  facts  of  vital  statistics  obtained  by 
the  Company  from  other  sources,  at  much  labor  and  expense,  as  well  as  by 
the  results  of  its  own  experience. 

The  intelligence  and  industry  the  Actuary  has  exhibited  in  the  prepar- 
ation of  this  Experience,  and  the  clearness  and  skill  with  which  he  has 
demonstrated  it  in  his  tables  and  diagrams,  will  be  apparent  to  you  in 
examining  the  document  now  submitted.  The  importance  of  collecting 
vital  statistics  from  all  quarters  where  our  business  extends,  can  not  ha 


TO     THE     BOARD     OF     TRUSTEES. 


overrated.  Those  collected  by  public  authority  in  this  country  are  mostly 
unreliable  from  the  incompetency  or  unfaithfulness  with  which  they  are 
gathered  and  arranged.  Those  obtained  from  abroad,  while  more  correct 
in  representing  facts,  are  not  only  taken  from  too  narrow  a  territorial  basis 
to  suit  our  purposes,  but  belong  to  classes  differing  from  ours  in  constitu- 
tion, habits,  and  employments,  nearly  as  much  as  the  country  they  inhabit 
does  in  geographical  extent  and  position.  Again,  vital  statistics  as  they 
exist  and  are  demonstrated  in  an  entire  community  comprising  both  sexes,  all 
ages,  employments,  and  conditions,  throw  little  light  upon  the  business  of 
Life  Assurance.  The  classes  who  assure  their  lives  are  taken  out  from  the 
whole  mass  included  in  the  census  returns,  and  embrace  mainly  professional 
men,  merchants,  manufacturers,  and  a  few  farmers  and  mechanics,  from  the 
ages  of  20  to  56. 

Our  observation  and  experience  among  those  who  have  been  Assured  in 
this  Company  already  embrace  a  larger  number  of  persons  than  those  com- 
prising the  entire  population  from  which  the  Carlisle  and  Northampton 
Tables  were  formed,  which  Tables  for  a  long  period  and  until  quite  recently 
were  those  mainly  used  by  the  Life  Assurance  Companies  of  Europe.  Among 
English  Companies  the  "  Equitable,"  one  of  the  oldest  and  most  successful, 
was  the  first  which  contributed  the  results  of  its  Mortuary  Experience.  It 
derived  its  chief  value  from  being  the  first  attempt  to  ascertain  the  value 
of  assured  lives.  The  next  was  the  celebrated  Actuaries'  or  Experience 
Table,  which  embraces  results  from  the  records  of  seventeen  different  Life 
Companies,  namely.  Equitable,  Amicable,  Alliance,  British  Commercial, 
Crown,  Economic,  Guardian,  Imperial,  Law,  London,  Norwich  Union,  Pro- 
moter, Koyal  Exchange,  Scottish  Widows'  Fund,  Sun,  Universal,  and  the  ■ 
University.  The  Equitable,  Amicable,  Eagle,  and  very  recently  the  Econo- 
mic, have  separately  investigated  and  made  public  the  results  of  theii 
experience. 


"  TO     THE     BOARD     OF     TKUSTEKS.  HI 

III  the  United  States,  the  Report  of  the  Experience  of  this  Company 
made  by  the  late  Mr.  Gill,  was  the  first  attempt,  as  already  stated,  although 
on  a  somewhat  limited  scale,- to  ascertain  the  value  of  assured  lives  in  this 
country.  The  '•'  Mutual  Benefit,"  of  New-Jersey,  have  in  their  Annual  Re- 
ports for  1857  and  1858,  published  the  probable  and  actual  number  of 
deaths  in  their  Company,  from  which  various  tables  contained  in  the 
present  Report  have  been  computed  by  our  Actuary  with  as  much  accuracy 
as  the  limited  facts  stated  would  admit. 

Our  own  experience,  though  more  favorable  than  the  Actuaries'  Table, 

or  that  of  any  other  known,  both  in  its  pecuniary  results  and  in  its  relative 
mortality,  compares  more  nearly  to  the  Actuaries'  than  to  the  Carlisle  or 

Northampton  Tables.* 

On  assuming  my  present  oflScial  duties,  and  seeing  the  great  importance 
of  American  vital  statistics  and  an  American  experience  in  Life  Assurance, 
I  applied  to  other  Companies  to  join  with  us  in  gathering  from  public 
sources  and  from  such  local  agents  and  examining  physicians  in  different 
sections  of  the  country  as  could  be  reached,  such  facts  as  might  be  useful 
to  all. 

I  regret  to  say  that  I  had  not  a  single  response  to  this  appeal  from  any 
Company,  and  that  the  facts  gathered  and  arranged  by  Dr.  Wynke  on 
our  appointment,  and  published  as  a  "  Report  on  Vital  Statistics,"  and  dis- 
tributed to  our  Trustees,  and  others,  were  from  data  exclusively  collected 
and  furnished  by  oureelves.  , 

During  the  past  two  years  another  attempt  has  been  made  to  obtain  the 
experience  of  different  Companies  not  only  in  their  general  results,  but 

*  For  our  favorable  mortality  experience  the  Institution  is  much  indebted  to  the  skillful 
and  thorough  examinations  of  Dr.  Post,  our  Medical  Examiner,  who  in  1853  and  in  1858 
])repared  the  Mortuary  Reports  of  the  Company.  Dr.  Post  is  now  engaged  in  bringinf" 
the  Reports  in  a  classified  form  to  this  date,  and  when  finished,  it  will  bo  published  in  a 
f.itnre  edition  of  this  work. 


IV  TO     THE     BOARD     OF     TRUSTEES. 

with  special  reference  to  Term  Policies,  proifering  our  own  experience  in 
return,  but,  as  in  the  former  case,  without  any  response  in  the  form  of  a  re- 
port, unless  the  instance  already  alluded  to,  forms  an  exception. 

It  is  hoped  that  neither  apathy  among  officers,  want  of  ability  on  the 
part  of  the  mathematicians  employed,  nor  a  disinclination  to  compare  results, 
have  led  to  inaction  in  a  matter  of  so  mvich  importance  to  all. 

The  Marine  Underwriter  who  would  venture  to  insure  vessels  to  navi- 
gate the  ocean  and  our  inland  waters  without  furnishing  himself  with 
proper  local  charts  and  the  results  of  experience  in  the  risks  that  he  covers, 
would  scarcely  display  more  imprudence  than  our  Life  Assurance  Com- 
panies do  by  a  blind  reliance  on  an  experience  three  thousand  mUes  distant. 

With  almost  equal  prudence  and  security  might  he  take  the  Ordnance 
Survey  of  the  Coast  of  Great  Britain,  and  assume  that  it  represented  the 
depth  of  water  and  currents  of  our  coast  and  harbors,  as  we  to  venture  to 
predicate  entirely  the  cost  and  results  of  Life  Assurance  over  our  broad 
country  with  all  its  variety  of  climate,  races,  habits,  and  occupations,  on  the 
results  of  that  isolated  district  with  its  even  climate  and  homogeneous  races. 

Impressed  with  these  views,  we  have  for  several  years  watched  the  deve- 
lopment of  the  experience  of  this  Company  with  unceasing  scrutiny  and 
solicitude,  and  under  the  authority  of  the  Board  have  from  time  to  time 
made  such  changes  in  the  Rates  and  in  the  Policies  issued,  as  to  conform 
both  to  a  sound  and  equitable  standard. 

The  result  at  the  present  time  is  thus  described  by  the  Insurance  Com- 
mittee in  their  recent  Report : 

"They  congratulate  the  Trustees  that  the  Report  demonstrates  the 
Company  to  have  been  so  managed  as  to  present  the  best  experience  in  its 
vital  statistics,  as  well  as  in  its  pecuniary  results,  ever  attained  in  the  same 
period  by  any  similar  Institution.     It  appears  that  the  Officers  of  the  Com- 


^  ^___,-^'       TO     THE     BOARD     OF     TRUSTEES.  V 

pany  have  been  so  fully  aware  of  the  facts  of  this  experience  as  they  have 
been  developed  in  its  business  and  (under  the  authority  of  the  Board)  to 
have  made  such  proper  arrangements  and  modifications  in  the  extra  rates 
required  of  residents  in  various  classes  and  of  different  conditions,  where 
practicable,  as  to  render  any  further  alterations  for  the  present  unnecessary. 
The  facts  of  our  experience  fully  justify  all  the  changes  made  in  the  past 
four  years,  both  as  to  Term  Policies  and  to  the  additional  rates  charged  for 
certain  classes  of  risks." 

The  Board  have  determined  that  the  Report  of  Experience,  which  was 
printed  for  the  private  use  of  the  Trustees,  shall  now  be  gratuitously  given 
to  the  public  for  their  benefit,  in  the  hope  that  this  example  may  be  fol- 
lowed by  other  American  Companies. 

The  future  growth  and  magnitude  of  Life  Assurance  in  this  country,  may 
be  conjectured  from  its  past  progress. 

No  people  are  more  capable  of  understanding  its  advantages  than  ours, 
and  by  none  wiU  they  be  more  cordially  and  extensively  embraced ;  but 
they  will  require  to  know  that  the  Companies  they  join  are  based  upon 
sound  principles  and  are  pursuing  a  sound  policy. 

The  fundamental  principles  of  Life  Assurance  are  few  and  simple,  rest- 
ing upon  the  ascertained  duration  of  human  life,  a  proper  selection  in  the 
lives  assured,  and  a  sufiicient  rate  of  premium  to  cover  the  risk  taken,  if  in- 
vested at  a  rate  of  interest  certain  to  be  realized.  Beyond  this,  in  the 
practical  application  of  these  principles,  a  competent  amount  of  scientific 
attainment,  of  knowledge  of  the  races  of  men,  their  physical  constitutions, 
habits,  and  occupations ;  the  diversities  of  climates,  and  the  prevailing  dis- 
eases incident  to  each,  and  of  the  actual  cost  of  the  several  extra  risks  to 
be  taken  is  necessary,  and  this  knowledge  should  be  settled  and  applied  by 
a  wise  and  discriminating  judgaient. 


VI  TO     THE     BOARD     OF     TRUSTEES. 

As  no  Company  in  this  country  will  claim  to  possess,  in  its  Executive 
management,  all  these  qualifications,  with  a  requisite  duration  and  extent  of 
experience,  to  verify  its  proceedings,  all  must  see  the  great  importance  of 
combined  wisdom  and  united  action  if  the  business  of  Life  Assurance  is  to 
occupy  the  commanding  eminence  here  to  which  it  is  entitled. 

The  Actuary's  Eeport  of  Experience  made  to  the  Board  of  Trustees  in 
November  last,  is  as  follows. 

I  am,  very  respectfully. 

Your  obedient  servant, 

F.   S.  WlNSTOJS^, 

New-York,  Nov.  15,  1858.  President. 


h  i  ii  U  A  li  V    ^, 

UNI  VEKSITY  OF 


tX^LlFOILXlA 


ACTUARY'S      REPORT. 


Gentlemen  : 

The  close  of  the  third  quinquennial  period  since  the  formation  of  this 
Company,  embracing  nearly  half  a  generation,  seems  an  appropriate  time 
for  making  a  careful  examination  of  the  results  of  its  Experience  in  respect 
to  the  mortality  amongst  members  ;  as  well  to  ascertain  in  what  particular 
circumstances  of  class,  term,  or  age,  we  have  been  successful  or  otherwise, 
as  to  indicate  what  modifications,  if  any,  should  be  made  in  our  present 
practice.  For  these  reasons  I  have  continued  the  observations  commenced 
by  the  late  Mr.  Gill,  from  which  results  of  Experience  might  be  deduced  ; 
with  special  reference  to  the  determination  of  the  comparative  mortality 
among  members  residing  in  the  different  classes ;  among  holders  of  short 
term  and  whole  life  policies  ;  and  also  of  the  relative  mortality  at  different 
ages  or  epochs  of  life. 

It  may  perhaps  be  well  to  remark  that  this  Company  assures  at  the  age 
according  to  the  "  nearest  birthday,"  assuming  that  the  errors  of  deficiency 


8  REPOBT    ON    EXPERIENCE. 

and  excess  will  balance  eaci.  other.  This  is  different  from  the  practice  of 
English  Companies,  who  assure  at  the  age  "  next  birthday,"  which  has  the 
effect  of  representing  their  members  to  be  older  than  they  are  in  reality, 
(about  four  months  on  the  average.)  With  the  exception  of  this  single 
assumption,  that  the  office  age  is  the  real  age^  the  results  which  are  now 
presented  are  deduced  from  the  most  rigorous  calculation.  The  number 
of  lives  exposed  to  mortality  are  carefully  separated  from  the  number  of 
policies^  and  no  care  or  labor  has  been  spared  in  making  the  various  observ- 
ations and  deductions  as  complete  and  accurate  as  possible.  The  annual 
Experience  of  the  whole  Company  has  been  noted  separately,  for  each  of 
the  fifteen  years  ending  February  1st,  1858,  as  may  be  seen  by  reference  to 
the  following  Table. 

TABLE    I. 
AxxuAL  Experience  of  the  whole  Company— 18^3-57  inclusive. 


EjtPosEu  TO  Mortality  in  the 

Probable 

Loss  BT  COM- 

1 

!  Frobaiile:  Loss  by  Cablisli 

Tear. 

CoMPiNT  rOK  ONB  WIIOLB  VKiE.     1 

I'ASV'S 

Tablb. 

Tablk. 

No.  nf  Lives 

No.  of 
Deuths. 

^J3 

No.  of 

and  fracUtins 
uf  Lives. 

Amount 

Amount. 

c2 

153 

Amount 

Deaths. 

Amount 

1843 

253.59 

966,716 

2.902 

11,461 

2.809 

10,902 

1844 

633.79 

2,312,278 

7.715 

29,703 

5 

18,000 

7.297 

27,119 

1845 

1,275.15 

4,346,769 

15.539 

54,518 

7 

18,100 

14.771 

51,026 

1840 

1,993.53 

6,226,630 

24.934 

80,436 

23 

69,400 

23.528 

75,809 

1847 

2,056.14 

8,128,045 

33.550 

106,741 

28 

66,150 

31.733 

100,392 

1848 

3,505.38 

10,707,018 

44.155 

140,014 

27 

94,200 

41.798 

131,983 

1849 

4,513.43 

13,290,200 

56.551 

173,986 

64 

175,950 

53.491 

163,859 

1850 

5,297.94 

15,127,795 

07.320 

200,201 

71 

154,640 

63.613 

188,391 

1851 

5,572.93 

15,867,144 

72.181 

213,790 

49 

164,100 

67.970 

200,290 

1852 

5,730.17 

10,713,402 

70.277 

228,051 

07 

203,100 

71.049 

213,924 

1853 

6,131.07 

18,508,260 

83.315 

257,197 

72 

207,200 

78.019 

239,581 

1854 

6,720.07 

20,723,850 

92.127 

289,339 

85 

281,500 

85.804 

269,294 

1855 

7,250.76 

22,870,204 

100.500 

321,332 

81 

267,850 

93.653 

298,490 

1856 

8,185.60 

26,148,107 

113.374 

367,014 

75 

264,255 

105.599 

340,985 

1857 

8,898.24 

29,121,868 

123.870 

408,790 

96 

328,100 

115.195 

379,813 

Total, 

08,617.79 

211,059,018 

914.377 

• 

2,882,633 

750 

2,312,545 

850.989 

2,692,404 

These  results  arc  deduced  from  observations  embracing  every  variety 


MUTUAL  LIFE  INSUEAKCE  COMPAKY  OF  NEW- YORK.  .9 

of  age,  term,  and  climate,  which  constitute  the  Company,  as  a  whole.  The 
comparison  is  therefore  not  strictly  just,  inasmuch  as  we  should  expect  that 
the  mortality  among  members  residing  in  the  South  or  California,  and  who 
pay  an  extra  premium,  would  prove  to  he  greater  than  that  obtaining 
among  members  residing  in  the  New-England  or  Middle  States,  who  are 
insured  at  the  regular  table  rates.  Each  class,  term,  and  age,  however,  will 
be  considered  separately  in  the  sequel. 

It  may  be  well  here  to  state  the  reason  why  the  second  column  of  this 
table  contains  the  number  of  lives  anA  fractions  of  lives  exposed  to  mortal- 
ity for  one  whole  year.  It  is  found  more  convenient,  in  computing  the 
Mortality  Experience  for  any  given  year,  to  assume  one  year  as  the  unit, 
rather  than  one  life  /  instead  of  saying,  for  instance,  that  we  have  one  life 
exposed  to  mortality  for  one  third  of  a  year^  we  find  it  more  convenient  to 
say  that  we  have  one  third  of  a  life  (.33)  exposed  to  mortality  for  one  whole 
year  :  the  results  in  each  case  being  precisely  the  same.  By  repeating  this 
process  for  each  life  in  the  office,  we  have  the  exact  number  of  lives  and 
fractions  of  lives  exposed  to  mortality  for  one  whole  year.  Out  of  this 
number  living  we  may  readily  determine  the  number  which  should  die 
during  a  given  year,  according  to-  any  table  of  mortality.  In  this  manner 
the  Experience  has  been  determined  separately,  for  each  year  of  the  Com- 
pany's history,  and  the  results  are  believed  to  be  quite  as  favorable  as  were 
ever  attained  by  any  Life  Company  in  the  world.  They  afford  satisfactory 
proof  that  the  predictions  by  our  theoretical  Table  of  Mortality  have, -so  far 
at  least,  been  more  than  sufficient  to  cover  losses  actually  sustained.  It  is 
only  by  thus  carefully  noting  the  annual/  Experience,  and  after  the  lapse  of 
a  sufficient  number  of  years  combining  their  results,  that  information,  at 
once  practical  and  reliable,  can  be  obtained.  "We  have  now  had  fifteen 
years'  Experience,  the  combined  results  of  which  for  every  age  may  be  seen 
by  the  following  table  : 


10 


EEPOBT  OU  EXPERIENCE. 


TABLE    II, 


Geiieeal  Experience  op  the  Mutual  Life  Insueance  Company  op  New-Toek,  foe 
Fifteen  Years,  ending  February  1st,  1858. 


Exposed  to  Mortality  in  thb 

PSOBABLR  Loss  BY  CoM-       | 

ACTTIAI.  Loss.             1 

Feoeable  Loss  bt  Carlisle 

Company  fob  one  whole  tear. 

I'ANY'S 

Tablb. 

Table. 

Age. 

No.  of  Lives 

No.  of 

O  JZ 

No.  of 

and  fractions 

Amount. 

Deaths. 

Amount. 

6  a 

Amount. 

Deaths. 

Amount. 

of  Lives. 

»P 

14 

22.10 

$60,562 

0.132 

$362 

0.118 

$335 

15 

38.52 

74,746 

.237 

460 

.239 

463 

16 

42.01 

69,176 

.266 

438 

.280 

464 

17 

54.58 

97,349 

.356 

634 

.376 

673 

18 

61.60 

91,711 

.413 

615 

.427 

639 

19 

109.45 

183,025 

.755 

1,263 

4 

6,000 

.758 

1,283 

20 

172.90 

298,087 

1.228 

2,117 

1 

600 

1.219 

2,105 

21 

271.68 

554,732 

1.986 

3,963 

4 

7,100 

1.848 

3,853 

22 

396.32 

819,659 

2.982 

6,168 

5 

10,000 

2.771 

5,733 

23 

596.83 

1,207,574 

4.619 

9,345 

4 

4,000 

4.204 

8,505 

24 

806.13 

1,674,654 

6.415 

13,327 

10 

16,300 

5.716 

11,878 

25 

1,046.36 

2,290,504 

8.562 

18,743 

11 

14,500 

7.653 

16,753 

26 

1,290.30 

3,028,871 

10.855 

25,482 

11 

26,000 

9.507 

22,317 

27 

1,589.81 

4,097,960 

13.755 

35,455 

8 

29,750 

12.350 

31,833 

28 

1,877.73 

4,937,100 

16.716 

43,950 

11 

22,350 

16.328 

42,948 

29 

2,069.02 

5,604,777 

18.948 

51,329 

20 

33,500 

20.324 

55,084 

80 

2,312.85 

6,400,502 

21.799 

60,325 

26 

82,000 

23.356 

64,664 

31 

2,503.43 

7,139,008 

24.281 

69,242 

21 

55,800 

25.527 

72,861 

32 

2,700.65 

7,850,626 

26.961 

78,373 

31 

86,100 

27.354 

79,527 

33 

2,811.82 

8,362,402 

28.894 

85,932 

26 

57,100 

28.260 

84,050 

34 

2,994.62 

9,092,211 

31.683 

96,196 

35 

79,350 

30.404 

92,313 

35 

3,020.93 

9,288,660 

32.907 

101,181 

29 

76,500 

30.985 

95,274 

36 

3,049.80 

9,486,108 

34.210 

106,406 

35 

91,800 

32.075 

100,098 

37 

3,067.96 

9,633,974 

35.441 

111,292 

23 

72,600 

33.195 

104,577 

38 

3,049.61 

9,690,711 

36.290 

115,320 

30 

108,500 

34.055 

108,216 

39 

2,967.64 

9,510,563 

36.392 

116,628 

31 

113,500 

35.245 

112,957 

40 

2,842.58 

9,252,250 

35.963 

116,967 

13 

41,750 

37.050 

120,325 

41 

2,686.54 

8,823,127 

35.033 

115,054 

21 

69,050 

37.005 

121,539 

42 

2,551.34 

8,418,212 

34.338 

113,301 

21 

82,100 

36.671 

120,994 

43 

2,407.72 

7,981,164 

33.477 

110,970 

28 

85,800 

35.110 

116,381 

44 

2,254.94 

7,506,844 

32.417 

107,918 

23 

75,000 

33.368 

111,086 

45 

2,077.77 

6,981,958 

30.919 

103,898 

21 

75,400 

30.776 

103,396 

46 

1,899.11 

6,481,796 

29.322 

100,079 

15 

43,500 

28.135 

96,034 

47 

1,695.42 

5,746,111 

27.298 

92,518 

20 

61,650 

24.757 

83,910 

48 

1,534,69 

5,240,157 

25.852 

88,270 

23 

66,350 

21.383 

73,022 

49 

1,404.73 

4,811,853 

24.796 

84,939 

18 

47,000 

19.219 

65,841 

50 

1,243.14 

4,284,821 

23.021 

79,346 

15 

53,000 

16.681 

57,494 

51 

1,090.47 

3,779,253 

21.198 

73,465 

17 

97,000 

15.583 

54,013 

52 

949.08 

3,279,651 

19.379 

66,967 

12 

40,000 

14.427 

49,854 

53 

822.56 

2,863,411 

17.656 

61,463 

15 

46,000 

13.283 

46,238 

MUTUAL  LIFE  INSURANCE  COIIPANY  OF  NEW-YORK. 


11 


TABLE    II.—  Continued. 


Exposed  to  Moetalitv  in  the 

PSOBABLK  Loss  Bt  CoM-       1 

......  r^»»         1 

Fuobable  Loss  bt  Carlislb 

Company  foe  onb  whole  ybae. 

pany's 

Table. 

Tablb. 

Age. 

No.  of  Lives 

No.  of 

»l 

No.  of 

and  fractions 

Amount. 

Deaths. 

Amount. 

d-3 

Amount. 

Deaths. 

Amount. 

of  Lives. 

!=S 

54 

726.99 

$2,501,514 

16.424 

$56,514 

16 

$65,600 

12.283 

$42,266 

55 

621.81 

2,133,839 

14.804 

50,805 

12 

43,000 

11.144 

38,245 

66 

543.42 

1,902,216 

13.659 

47,814 

10 

62,895 

10.324 

36,142 

57 

448.37 

1,573,554 

11.925 

41,850 

9 

45,900 

9.371 

32,883 

58 

070.62 

1,294,064 

10.453 

36,498 

6 

28,800 

8.973 

31,324 

59 

311.74 

1,024,472 

9.346 

30,714 

3 

5,000 

8.690 

28,966 

60 

259.19 

815,740 

8.281 

26,062 

7 

38,300 

8.681 

27,318 

6] 

212.50 

637,865 

7.252 

21,767 

12 

31,800 

7.634 

22,826 

62 

167.33 

520,138 

6.113 

19,002 

5 

22,000 

6.260 

19,457 

63 

131.62 

382,571 

5.157 

14,989 

9 

22,500 

5.034 

14,633 

64 

104.84 

312,201 

4.412 

13,138 

5 

17,800 

4.170 

12,416 

65 

86.16 

243,415 

3.899 

11,014 

5 

11,200 

3.539 

10,001 

66 

67.19 

189,335 

3.271 

9,216 

3 

15,000 

2,856 

8,047 

67 

49.66 

150,676 

2.601 

7,891 

1 

1,000 

2.193 

6,688 

68 

35.00 

104,008 

1.972 

5,859 

1 

10,000 

1.625 

4,831 

69 

26.98 

89,634 

1.633 

5,424 

1 

5,000 

1.325 

4,402 

70 

20.07 

66,245 

1.303 

4,302 

1 

4,000 

0.979 

3,421 

71 

12.56 

37,652 

.881 

2,642 

.... 

.749 

2,216 

72 

11.55 

24,604 

.876 

1,865 

1 

1,000 

.787 

1,676 

73 

6.71 

16,895 

.549 

1,383 

.  •  •  • 

.525 

1,320 

74 

6.95 

14,722 

.615 

1,302 

1 

2,000 

.626 

1,327 

75 

4.09 

9,933 

.391 

949 

.389 

949 

76 

3.96 

8,953 

.409 

•   924 

.... 

.408 

922 

77 

2.71 

6,827 

.302 

761 



.290 

734 

78 

1.03 

2,055 

.124 

247 

1 

2,000 

.224 

224 

Total, 

68,617.79 

211,059,018 

914.377 

2,882,633 

750 

2,312,545 

857.101 

2,692,764 

In  order  to  give  a  clearer  idea  of  tlie  results  contained  in  this  Table,  I 
have  plotted  in  the  following  Diagram  (No.  1)  the  numbers  for  eacli  age, 
contained  in  the  columns  headed  "  Probable  number  of  deaths,"  and  "Actual 
number."  Diagram  No.  2  contains  in  a  similar  manner,  a  comparison  of  the 
"Probable"  and  "Actual"  amount  of  loss,  at  each  age.  By  means  of  these 
Diagrams  the  entire  results  of  Experience  may  be  seen  at  a  glance. 

I  have  also  computed  Tables,  similar  to  the  above,  showing  the  Expe- 
rience among  members  residing  in  each  of  the  classes  separately,  in  order  to 
determine  the  comparative  mortality  among  assured  lives  in  diflferent  parts 


12 


EEPORT    ON    EXPEEIEKCE. 


of  the  country.  These  classes  are  the  same  as  those  contained  in  the  map 
prefacing  the  Annual  Keport  for  1858,  and  explained  in  pp.  66-69.  (See 
Eeport.)  It  will  be  observed  that  among  the  members  of  this  Company 
are  residents  in  all  parts  of  the  United  States ;  hence  the  influence  of  almost 
every  variety  of  soil  and  climate  is  exerted  upon  the  lives  and  health  of 
our  assured,  and  renders  the  task  of  adjusting  their  varied  interests  one  not 
only  of  great  interest,  but  also  of  some  difiiculty. 

It  has  not  been  thought  necessary  to  present  these  different  tables  in 
detail,  as  the  results  contained  in  them  may  be  observed  by  the  following 
recapitulations : 

TABLE     III. 

COMPAEATTVE   MOKTALITT   IX   THE   DiFFEEEXT    CLASSES. 


(1843-52 

Whole  Company,  ■]  1853-57 

(15  years 


Class  I., 


( 1843-52 
i 1853-57 
(15  years 


n,       TT  (1843-52 

rTl-  '   VT^      ^853-57 
(including  VI.)      |igy,^3 


Class  III.,. 


(1843-52 
■J  1853-57 
( 15  years 

(1843-52 
•]  1853-57 
( 15  years 


(1843-52 

Classes  V.  &  VH.,  i  1853-57 

(15  years 


Class  IV.,. 


Number  of 
Lives  and 
Fractions  of 
Lives  which 
have  been 
exposed  to 
the  risk  of 
mortality 
for  one 
whole  year. 


Probable 

nnmber  of 

Deaths. 


31,432.05 

37,185.74 
68,617.79 

19,937.20 
26,639.49 
46,576.69 

4,479.40 

6,393.45 

10,872.85 

1,569.60 
1,555.20 
3,124.70 

1,441.10 
1,637.55 
3,078.65 

861.10 

960.05 

1,821.15 


company's 

TABLE. 


401,166 
513,211 
914,377 

255,083 
368,741 
623,824 

56,643 

85,012 

141,655 

20,199 
22,678 
42,877 

18,575 
2.3,937 
42,512 

8,837 
12,843 
21,680 


340 
410 
750 

178 
262 
440 

48 

79 

127 

20 
21 
41 

23 
35 

58 

37 
13 
50 


Per  cent- 
age  of 
Actual 

on  Pro- 
bable 
No.  of 

Deaths. 


84.75 
79.88 
82.02 

69.78 
71.05 
70.53 

84.74 
92.93 
89.66 

99.01 
92.60 
95.62 

123.83 
146.22 
136.43 

418.68 
101.22 
230.62 


Rate  per 
cent  of 
Actual 
Mor- 
tality. 


1.08 
1.10 
1.09 

0.89 
0.98 
0.96 

1.07 
1.23 
1.17 

1.27 
1.35 
1.31 

1.24 
2.14 
1.88 

4.30 
1.35 
2.75 


Kate  per 
cent  of 

Probable 
Mor- 
tality. 


1.28 
1.38 
1.33 

1.28 
1.39 
1.34 

1.26 
1.33 
1.30 

1.29 
1.46 
1.37 

1.29 
1.46 
1.38 

1.03 
1.34 
1.19 


1,238,944 
1,643,689 
2,882,633 


COMPAXy's  TABLE. 


Probable 
amount 
of  Loss. 


1,118,976 


264,428 


102,921 


119,209 


38,140 


Actual 
amount 
of  Loss. 


963,140 
1,349,405 
2,312,545 


782,005 


230,650 


101,800 


208,500 


26,450 


Actual 
Loss  to 
each 
$100 
predict- 
ed. 


77.74 
82.09 
8  J.  22 


69.89 


87.22 


98.91 


174.90 


69.35 


N«l. 


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]V?2. 


eAnwunt  ofZOfg  hrJDeatJv. 


MUTUAL  LIFE  INSURANCE  COMPANY  OF  NEW-TOEK.  13 

"We  observe  by  this  table  of  recapitulations  the  following  comparisons, 
which  of  course  include  all  ages : 

1st.  The  entire  results  of  Experience  not  only  for  the  whole  Company, 
but  also  for  each  class  separately,  during  the  fii-st  ten  years,  the  last  five 
years,  and  the  whole  fifteen  years  of  its  existence. 

2d.  The  number  of  lives  exposed  to  mortality  for  one  whole  year  in  the 
whole  Company,  with  the  corresponding  numbers  in  each  of  the  classes, 
duiing  each  period. 

3d.  The  probable  number  of  deaths  according  to  the  Company's  Table 
of  Mortality,  in  the  whole  Company,  and  in  each  of  the  classes  separately. 

4th.  The  actual  number  of  deaths  corresponding. 

5th.  The  per  centage  of  actual  number  of  deaths  on  probable,  or  in 
other  words  the  actual  number  of  deaths  corresponding  to  each  one  hMu- 
died  predicted  by  the  Company's  Table  of  Mortality. 

6th.  The  rate  per  cent  of  actual  mortality  which  may  be  also  read,  by 
taking  all  the  figures,  as  the  actual  number  of  annual  deaths  in  the  Com- 
pany, out  of  each  ten  thotosand  lives  exposed  to  mortality,  both  in  the  whole 
Company  and  in  each  of  the  classes  separately. 

Tth.  The  rate  per  cent  of  probable  mortality  according  to  the  predic- 
tions by  the  Company's  Table,  corresponding  to  the  above. 

8th.  The  probable  amount  of  loss  by  the  Company's  Table,  in  the  whole 
Company  and  in  each  class  separately.  I  regret  not  being  able  to  give  a 
comparison  of  the  actual  and  probable  amount  of  loss  for  the  first  ten  years 
in  each  class,  on  account  of  the  want  of  time. 

9th.  The  actual  amount  of  loss  in  each  class. 

10th.  The  per  centage  of  actual  loss  on  the  probable  amount,  or  in 
other  words,  the  actual  amount  of  loss  corresponding  to  each  $100  pre- 
dicted. 


14  BEPOBT    ON    EXPERIENCE. 

By  means  of  these  comparisons  we  may  readily  see  that  our  best  Expe- 
rience has  been  in  the  New-England  and  Middle  States,  or  near  the  Home 
Office,  and  that  to  a  very  great  extent.  That  in  Class  II.  or  the  Western 
States,  in  which  residents  are  assured  at  regular  table  rates  of  premium,  the 
Experience  has  not  been  quite  so  favorable,  although  within  the  predictions 
by  our  tables.  We  also  observe  that  the  comparative  mortality  among 
members  residing  in  this  class  has  materially  increased  during  the  past  five 
years.  It  is  true  that  these  results  include  residents  in  Class  VI.,  (in  the 
immediate  valley  of  the  Mississippi,)  in  wliich  an  extra  premium  is  charged, 
but  by  reference  to  the  Eeport  on  the  Experience  among  residents  of  St. 
Louis,  (see  "  Minutes"  Board  of  Trustees,  February,  1857,)  of  which  Class 
VI.  is  mainly  composed,  it  will  be  seen  that  the  mortality  in  Class  II.  pro- 
per, is  very  nearly  as  great  as  that  in  Class  VI.  alone. 

We  also  observe  that  the  mortality  in  Class  III.,  or  Southern  States 
bordering  on  the  Atlantic,  has  been  more  favorable  during  the  last  five 
years  than  in  the  fii'st  ten,  and  also  slightly  more  favorable  even  than  in 
Class  II.  One  thing,  however,  should  be  borne  in  mind,  that  from  the  com- 
parative scantiness  of  the  data  in  this  and  in  the  succeeding  classes,  the 
results  are  not  so  reliable  as  those  contained  in  Classes  I.  and  II. 

The  mortality  among  members  residing  in  Class  IV.,  or  the  Southern 
States  bordering  on  the  Gulf  of  Mexico,  has  materially  increased  during  the 
last  five  years,  and  to  an  extent  somewhat  alarming.  The  amount  of  loss, 
too,  in  this  Class  has  been  much  larger  than  that  anticipated. 

Perhaps  the  most  curious  results  of  the  above  recapitulations  are  those 
referring  to  residents  in  California,  (Class  V.,)  showing,  for  instance,  that, 
while  the  actual  number  of  deaths  corresponding  to  each  hundred  predicted 
was,  previous  to  1853,  nearly  four  hundred  and  nineteen^  (418.68,)  it  was 
during  the  past  five  years,  one  hundred  and  one  (101.22)  only,  owing  no 


MUTUAL  LIFE  INSUEANCE   COMPANY  OF  NEW-YOEK. 


15 


doubt  to  the  increased  facilities  of  procuring  the  comforts  and  necessaries 

of  life  in  that  State. 

In  order  to  give  a  clearer  idea  of  the  practical  value  of  the  foregoing 

results,  I  have  arranged  the  following  Tahle,  in  which  columns  A,  B,  and  C, 

show  the  annual  rate  per  cent  of  actual  mortality  among  residents  in  each  of 

the  classes,  for  the  first  ten,  the  last  five,  and  the  whole  fifteen  years, 

respectively,  according  to  the  Experience  of  the  Company.     Column  D 

shows  the  extra  annual  premium  (per  cent  on  amount  of  insurance)  which 

should  be  charged  for  residence  in  each  class,  in  order  to  place  them  all 

upon  an  equal  footing,  as  far  as  regards  the  risk  of  mortality  with  Class  I. 

alone.     Column  E  shows  in  a  similar  manner  the  extra  annual  premium 

which  should  be  charged  in  each  class  when  compared  with  Classes  I.  and 

II.  coniMned.     Column  F  shows  the  extra  annual  premium  now  charged  by 

this  Company  for  residence  in  each  class,  in  addition  to  the  regular  tabic 

rates. 

TABLE     IV. 


"Whole  Company, .  . 
Class  I., 

"     n, 

"      III., 

"      IV., 

"    v., 

"      "     since  1853, 


Annaal  Eate  per  cent  of  Mortality. 


1.08 
.89 
1.07 
1.27 
1.24 
4.30 


1S53-5T. 


1.10 
.98 
1.23 
1.35 
2.14 
1.35 
1.35 


15  years. 


1.09 
.96 
1.17 
1.31 
1.88 
2.75 


Extra  Anniml  Preminin 

which  should  be  charged 

in  order  to  equalize  the  rlblc 


with  Class  I. 
Per  cent. 


0.745 
1.147 
2.867 
6.449 
1.290 


Willi  Cla^-t-B 
I.  and  II. 
Per  rent. 


0.975 
2.634 
5.158 

1.092 


ExtraAnnual 
i'rtniiiim 

now  (liarged, 
per  cent  on 
Amount  <»f 
Insurance. 


0.500 
2.000 
1.000 
1.000 


18 


BEPOBT    OS    EXPERIENCK. 


These  results,  from  tlie  comparatively  small  amount  of  data,  can  scarcely 
be  depended  upon  as  furnisMng  reliable  statistics  of  actual  mortality  in  dif- 
ferent parts  of  our  country,  and  among  all  classes  and  ages ;  at  the  same 
time,  however,  they  are  believed  to  afford  a  more  reliable  comparison  of 
the  relative  mortality  among  assured  lives  in  the  different  classes  than  were 
ever  before  obtained.  They  prove  conclusively  that  the  extra  rates  of  pre- 
mium now  charged  by  the  Company,  are  not  only  judicious,  but  that  they 
are  in  no  case  quite  sufficient  to  provide  for  the  extra  risk  which  they  are 
intended  to  cover,  and  consequently  can  neither  be  rescinded  nor  reduced, 
without  doing  injustice  to  members  residing  in  the  New-England  or  Middle 
States. 


COMPAKATTVE     MoBTALITY    AlIONG    MeMBEES    ASSURED    XJNDER    ShOET-TeRM 

AND  Whole-Life  Policies. 

In  order  to  throw  some  additional  light  upon  this  interesting  question,  I 

have  computed  the  following  Table,  embracing  results  for  the  last  five 

years  only : 

TABLE     V. 


Term  of  Policy. 

Number  of 

Lives  exposed  to 

Mortality. 

Probable 

No.  of  Deaths 

Company's 

Table. 

Actual 
No.  of 
Deaths. 

No.  of  Deaths 
to  each  100 
predicted. 

Actual 

Hate  of 

Mortality. 

Probabla 

Kato  of 

Mortality. 

ExtraAnnnal 

Premium 
which  should 
be  charged. 

Life, 

Endowment,. .  .  . 
Seven  Years, .  .  . 
Other  short  terms, 
W  hole  Company, 

33,222.52 

83.02 

3,255.56 

624.64 

37,185.74 

460.56 

0.88 

44.03 

7.74 

513.21 

341 

0 

56 

13 

410 

74 
0 

127 

168 

80 

1.02 
0.00 
1.72 
2.08 
1.10 

1.39 
1.60 
1.35 
1.24 
1.38 

1.090 

1.878 

MUTUAL  LIFE  INSUBANCK  COMPANY  OF  NEW-YOEK.  17 

The  mortality  among  persons  insured  by  short-term  policies  in  this 
Company,  has  been  found  to  be  in  all  cases  inversely  proportionate  to  the 
length  of  term  of  the  policy  itself.  Our  Mortuary  Experience  among  mem- 
bers assured  under  short-term  policies  is  thus  shown  to  have  been  very 
unfortunate,  so  much  so,  that  by  reference  to  the  last  column,  "we  find  that 
an  extra  annual  premium  of  from  one  to  nearly  two  per  cent  should  be 
charged;  which,  added  to  the  regular  table  rates,  wUl  make  the  gross 
annual  premium  on  short-term  policies  nearly,  if  not  quite  as  high  as  the 
regula/r  life  rates.  In  other  words.  Experience  teaches  that  short-term 
policies  should  not  be  issued  by  this  Company  at  less  than  life  rates, 
thus  practically  confirming  the  wisdom  and  justice  of  the  recent  Resolution 
by  the  Board  of  Trustees,  declining  to  underwrite  these  risks,  at  least  until 
more  reliable  data  than  were  then  possessed  could  be  obtained. 

Applications  for  assurance  under  short-term  policies,  as  was  remarked 
by  the  President  in  his  last  Annual  Address,  are  often  made  by  persons 
who  wish  to  provide  for  an  extra  hazardous  risk,  either  of  climate,  occupa- 
tion, or  disease,  Tcnown  only  to  themselves,  and  in  which  the  applicant  has 
every  advantage  over  the  Medical  Examiner;  or  they  are  made  for  the 
purpose  of  affording  security  for  debt,  both  of  which  cases  include  contin- 
gencies not  foreseen  when  naming  the  premium. 

In  the  earlier  practice  of  Insurance,  when  a  life  not  altogether  first 
class,  was  offered,  the  risk  was  sometimes  accepted  for  a  short  term  of  years, 
and  at  a  small  annual  premium,  when  it  would  have  been  rejected  for  the 
whole  term  of  life,  and  at  a  higher  rate  of  annual  premium.  I  mention  this 
singular  fallacy  to  show  that  the  science  as  well  as  practice  of  Life  Insur- 
ance is  progressive,  and  that  the  results  of  Experience  furnish  the  safest  and 
surest  rules  of  guidance. 


18 


EEPOET  ON  EXPEHrENCE. 


The  following  Table  shows  the  exact  number  of  Life,  Term,  and  Endow- 
ment Assurance  Policies,  which  were  in  force  Febiniary  1st,  1858,  with 
their  corresponding  dividends  or  additions,  payable  in  all  cases  at  death  or 
with  the  policy  itself. 


TABLE     VI. 


Policies  is  fokob 
FBfl.  1st,  1868. 

DiTIDEXDS  OS  ADDniOSS  TO  POLICIES  IH  TO»C«. 

No. 

Amonnt 

184S. 

1653. 

18SS. 

ToUL 

1843 

144 

$482,300 

$50,130  19 

$43,959  38 

$48,639  28 

$142,728  85 

44 

198 

656,750 

57,388  91 

60,564  84 

66,935  62 

184,889  37 

45 

378 

1,025,950 

66,217  67 

94,561  49 

106,727  82 

267,506  98 

46 

398 

969,030 

42,837  75 

92,986  76 

102,891  69 

238,716  20 

47 

585 

1,599,115 

36,058  65 

158,595  03 

173,598  21 

368,251   89 

48 

535 

1,396,773 

3,277  00 

120,467  25 

152,018  54 

275,762  79 

49 

652 

1,608,300 

2,337  18 

110,653  15 

178,428  76 

291,419  09 

50 

537 

1,252,600 

7,539  93 

68,916  01 

143,290  32 

219,746  26 

51     , 

400 

971,244 

2,954  85 

32,274  24 

110,720  84 

145,947  93 

52 

476 

1,388,600 

2,932  62 

17,984  09 

161,788  08 

182,704  79 

53 

620 

1,823,827 

•   ■   >   • 

5,744  50 

195,660  76 

201,405  26 

54 

866 

2,634,237 

.... 

8,281  06 

220,185  07 

228,466  13 

55 

1,018 

3,472,660 

.... 

6,124  67 

209,800  71 

216,925  38 

56 

1,297 

3,874,010 

.... 

4,083  19 

148,285  58 

152,368  77 

57 

1,372 

4,342,850 

•   .   .   . 

1,272  26 

58,785  72 

60,057  98 

Joint  Lives, 

9 

35,100 

28  46 

1,276  16 

2,073  15 

3,377  77 

Total  Life, 

9,485 

$27,533,346 

$271,703  21 

$827,742  08 

$2,079,830  15 

$3,179,275  44 

SEVEN  YEAES. 


1851 
52 
53 
54 
55 
56 
57 


Total, 


48 
71 
65 
83 
104 
106 
95 


572 


$127,400 
198,400 
217,300 
262,650 
320,550 
339,000 
274,000 


$1,739,300 


$450  01 
1,388  23 


$1,838  24 


$1,502  39 
1,980  96 
2,867  75 
1,986  96 
1,314  37 
1,381  32 


$11,033  75 


$3,996  62 
6,919  26 
6,311  72 
5,424  26 
5,955  87 
4,675  60 
758  21 


$34,041  54 


$5,949  02 

10,288  45 

9,179  47 

7,411  22 

7,270  24 

6,056  92 

758  21 


$46,913  53 


MUTUAL  LIFE  LNSUBANCK  COMPANY  OF  NEW-YOEK. 


Ifi 


TABLE     VI.—  Continued. 


Tear  of  Issue, 

Policies  in  forob 
Feb.  1st,  1858. 

DiTIDEHDS  OB  ADDITIONS  TO  POLICIES  IN  FORCE. 

Term  of  Policy. 

No. 

Amount 

1848. 

1863. 

1S5S. 

Total. 

Brought  over, 

10,057 

$29,272,646 

$273,541  45 

$838,775  83 

$2,113,871  69 

$3,226,188  97 

OTHEB  SHORT  TERMS, 


14  years. 

1 

$1,000 

$36  07 

$72  50 

$108  57 

11       " 

1 

10,000 

86  83 

507  02 

593  85 

10      " 

14 

79,000 

988  52 

2,281  54 

3,270  06 

9       " 

1 

10,000 

.... 

•    •    •    • 

•    •    •    • 

8       " 

1 

4,000 

.... 

93  27 

93  27 

6       " 

106 

306,550 

43  34 

2,774  14 

2,817  48 

4       " 

1 

200 

.    •    •    • 

•    •    .    . 

•    •    •    • 

3       " 

8 

26,600 

•    •    •    • 

180  83 

180  83 

2       " 

20 

88,200 

•    •    •    ■ 

611   29 

611  29 

1       " 

21 

66,700 



169  55 

169  55 

Total, 

174 

$591,250 

$1,154  76 

$6,920  14 

$7,844  90 

ENDOWMBNT-ASSURAKCES. 


Death  or  40, 

"        45, 
"        50, 
"        55, 
"        60, 
"        65, 

1 
31 
53 
36 
34 

1 

$2,000 
143,000 
180,000 
154,000 
125,800 
5,000 

.... 

$41  15 
2,694  93 
4,226  91 
3,726  35 
3,562  65 

364  71 

$41  15 
2,694  93 
4,226  91 
3,726  35 
3,562  65 

364  71 

Total, 

156 

$609,800 

$14,616  70 

$14,616  70 

POST-MOETEM  BIVIDENDS. 


Deaths,  1853 
"             64 
"             55 
"             56 
"             57 

$1,894  56 
4,934  97 
7,081  69 
8,480  28 

11,188  33 

■$1,894  56 

4,934  97 

7,081  59 

8,480  28 

11,188  33 

Total, 

$33,579  73 

$33,579  73 

Total  Office, 

10,38 

7  $30,473,696 

$273,541   45 

$839,930  59 

$2,168,758  26 

$3,282,230  30 

20 


REPORT    ON    EXPERIENCE. 


Comparative  Moetalitt  at  diffeeent  Ages. 

In  order  to  facilitate  the  interesting  comparison  of  the  relative  value  of 
life  at  different  ages,  I  have  computed  the  following  Table  No.  VII.,  which 
is  an  "  Adjusted  Eate  of  Mortality  according  to  the  General  Experience  of 
the  Mutual  Life  Insurance  Company  of  New-York,  for  the  fifteen  years 
ending  February  1st,  1858. 


TABLE     VII. 
Adjusted  Table  of  Moetalitt  according  to  the  Expeeience  of  the  whole  Compant 

FOE   15   YEAES  ENDING  FeBKTTAET  IST,   1858. 


No.  Uvlng. 

No.  dying 

Rate  per  cent  of 

AkMUAL   MORT.ALITT 

NnMBfiK  OUT  OF  WHICH  ONE 
PeBSON  will  DIB  ASNDALLT. 

EXPEOTATION  OF  LlFK 

Age. 

Age. 

By  Co.'fl 

Bv  Co.'8 
Table. 

Company's 

Company's 

By  Co.'s 

By  Co.'s 
Table. 

Experience. 

Experience. 

Table. 

Experience. 

10 

100,000 

741 

0.741 

0.526 

135.00 

190.0 

49.24 

47.51 

10 

11 

99,259 

739 

.744 

.544 

134.35 

183.7 

48.60 

46.76 

11 

12 

98,520 

738 

.749 

.562 

133.50 

177.9 

47.96 

46.01 

12 

13 

97,782 

737 

.754. 

.580 

132.70 

172.5 

47.23 

45.27 

13 

14 

97,045 

736 

.758 

.598 

131.85 

167.4 

46.68 

44.53 

14 

15 

96,309 

735 

.763 

.615 

131.03 

162.5 

46.03 

43.79 

15 

16 

95,574 

734 

.768 

.633 

130.20 

157.9 

45.38 

43.06 

16 

17 

94,840 

733 

.773 

.652 

129.35 

153.5 

44.73 

42.33 

17 

18 

94,107 

732 

.778 

.671 

128.50 

149,1 

44.07 

41.60 

18 

-19 

93,375 

731 

.783 

.690 

127.68 

144.9 

43.41 

40.88 

19 

20 

92,644 

732 

.790 

.710 

126.60 

140.8 

42.75 

40.16 

20 

21 

91,912 

732 

.796 

.731 

125.57 

136.8 

42.09 

39.45 

21 

22 

91,180 

733 

.804 

.753 

124.45 

132.9 

41.42 

38.74 

22 

23 

90,447 

733 

.811 

.774 

123.35 

129.2 

40.75 

38.03 

23 

24 

89,714 

734 

.818 

.796 

122.24 

125.6 

40.08 

37.32 

24 

25 

88,980 

735 

.826 

.818 

121.11 

122.2 

39.41 

36.61 

25 

26 

88,245 

735 

.833 

.841 

119.98 

118.9 

38.73 

35.91 

26 

27 

87,510 

736 

.841 

.865 

118.86 

115.6 

38.05 

35.21 

27 

28 

86,774 

737 

.849 

.890 

117.74 

112.3 

37.37 

34.51 

28 

29 

86,037 

738 

.857 

.916 

116.63 

109.2 

36.69 

33.82 

29 

30 

85,299 

738 

.866 

.943 

115.53 

106.1 

36.00 

33.13 

30 

31 

84,561 

739 

.874 

.970 

114.44 

103.1 

35.31 

32.44 

31 

32 

83,822 

739 

.882 

.998 

113.35 

100.2 

34.62 

31.75 

32 

33 

83,083 

740 

.891 

1.028 

112.29 

97.3 

33.92 

31.07 

33 

34 

82,343 

740 

.899 

1.058 

111.25 

94.5 

33.22 

30.38 

34 

35 

81,603 

740 

.907 

1.089 

110.24 

91.8 

32.52 

29.70 

35 

36 

80,863 

740 

.915 

1.122 

109.34 

89.1 

31.81 

29.03 

36 

MUTUAL  LIFE  INSURANCE  COMPANY  OF  NEW-YORK. 


21 


TABLE     VII.—  Continued. 


No.  living. 

No.  dying. 

Eate  pei 
Annual 

CENT  OF 
MOKTALITY 

Number  out  of  which  oxb 
Pebso.s  will  die  annually. 

j     Expectation  of  l-ikb 

Age. 

Age. 

By  Co.'s 

Bv  Co.'a 

Company*a 

Company's 

By  Co.*8 

Bv  Oo.'s 
Table. 

Exi)erlence. 

Table. 

Experience. 

Table. 

Experience. 

37 

80,123 

738 

.921 

1.155 

108.53 

86.6 

31.10 

28.35 

37 

38 

79,385' 

736 

.927 

1.190 

107.88 

84.0 

30.39 

27.67 

38 

39 

78,649 

732 

.931 

1.226 

107.47 

81.5 

29.67 

27.00 

39 

40 

77,917 

726 

.932 

1.264 

107.25 

79.1 

28.94 

26.33 

40 

41 

77,191 

721 

.934 

1.304 

107.03 

76.7 

28.21 

25.66 

41 

42 

76,470 

717 

.938 

1.346 

106.61 

74.3 

27.47 

24.99 

42 

43 

75,753 

719 

.949 

1.390 

105.37 

71.9 

26.72 

24.33 

43 

44 

75,034 

729 

.972 

1.438 

102.93 

69.5 

25.97 

23.66 

44 

45 

74,305 

750 

1.010 

1.488 

99.03 

67.2 

25.23 

23.00 

46 

46 

73,555 

784 

1.066 

1.544 

93.84 

64.8 

24.48 

22.34 

46 

47 

72,771 

824 

1.133 

1.610 

88.29 

62.1 

23.73 

21.68 

47 

48 

71,947 

867 

1.205 

1.685 

83.02 

69.4 

23.00 

21.03 

48 

49 

71,080 

908 

1.277 

1.765 

78.32 

66.6 

22.27 

20.38 

49 

50 

70,172 

941 

1.341 

1.852 

74.56 

54.0 

21.56 

19.74 

50 

51 

69,231 

966 

1.395 

1.944 

71.68 

51.4 

20.84 

19.10 

51 

52 

68,265 

990 

1.451 

2.042 

68.92 

49.0 

20.13 

18.47 

52 

53 

67,275 

1,018 

1.513 

2.146 

66.09 

46.6 

19.42 

17.84 

53 

54 

60,257 

1,049 

1.583 

2.259 

63.16 

44.3 

18.71 

17.22 

64 

55 

65,208 

1,086 

1.666 

2.381 

60.02 

42.0 

18.00 

16.61 

55 

56 

64,122 

1,131 

1.764 

2.514 

56.68 

39.8 

17.30 

16.00 

56 

57 

62,991 

1,185 

1.881 

2.660 

63.17 

37.6 

16.60 

15.40 

67 

58 

61,806 

1,247 

2.017 

2.820 

49.57 

35.5 

15.91 

14.81 

68 

69 

60,559 

1,317 

2.175 

■2.998 

45.97 

33.4 

15.23 

14.23 

59 

60 

59,242 

1,399 

2.361 

3.195 

42.35 

31.3 

14.55 

13.65 

60 

61 

57,843 

1,485 

2.568 

3.413 

38.94 

29.3 

13.89 

13.08 

61 

62 

56,358 

1,578 

2.800 

3.653 

35.72 

27.4 

13.25 

12.63 

62 

63 

54,780 

1,675 

3.057 

3.918 

32.71 

25.5 

12.61 

11.98 

63 

64 

63,105 

1,774 

3.340 

4.208 

29.94 

23.8 

12.00 

11.45 

64 

65 

51,331 

1,878 

3.659 

4.525  • 

27.33 

22.1 

11.39 

10.93 

65 

66 

49,453 

1,978 

4.000 

4.868 

25.00 

20.5 

10.81 

10.43 

66 

67 

47,475 

2,082 

4.386 

5.237 

22.80 

19.1 

10.24 

9.94 

67 

68 

45,393 

2,193 

4.831 

5.633 

20.70 

17.7 

9.69 

9.46 

68 

69 

43,200 

2,304 

5.333 

6.052 

18.75 

16.5 

9.15 

8.99 

69 

70 

40,896 

2,427 

5.935 

6.494 

16.85 

15.4 

8.64 

8.54 

70 

71 

38,469 

2,539 

6.601 

7.016 

15.15 

14.3 

8.15 

8.10 

71 

72 

35,930 
33,307 

2,623 
2,73a' 

7.299 
8.197 

7.581 
8.188 

13.70 
12.20 

13.2 

7.70 

7.67 

72 

73 

12.2 

7.26 

7.26 

73 

74 

30,577 

2,705 

8.847 

8.847 

11.30 

11.3 

6.86 

6.86 

74 

79 

17,669 

2,298 

■    •     >    • 

13.006 

.... 

7.7 

5.09 

6.09 

79 

84 

7,732 

1,466 

.... 

18.968 

.... 

6.3 

3.63 

3.63 

84 

89 

2,156 

630 

.... 

29.238 

.... 

3.4 

2.36 

2.35 

89 

94 

213 

110 

...    * 

51.630 

.... 

1.9 

1.28 

1.28 

94 

99 

1 

1 

100.000 

100.000 

.... 

1.0 

.50 

.50 

99 

22 


EEPORT    on    EXPERIENCE. 


Some  of  the  corresponding  numbers  from  the  Company's  theoretical 
Table  are  also  given,  by  means  of  which  the  "Annual  Rate  of  Mortality," 
the  "  Number  out  of  which  one  person  may  be  expected  to  die  in  each 
year,"  and  the  "  Expectation  of  Life,"  as  determined  by  the  results  of  our 
own  Experience,  may  be  readily  compared,  at  each  age,  with  the  same  num 
bers  according  to  that  Table.  It  will  be  observed  that  these  numbers  for 
both  tables  are  the  same  after  reaching  the  age  of  VO,  which  is  owing  to  the 
fact  that  the  number  of  lives  exposed  to  mortality  above  that  age  in  the 
Company,  has  been  too  small  to  furnish  results  at  all  satisfactory. 

The  relative  mortality  at  different  ages  among  members  of  this  Com- 
pany and  also  of  the  "  Mutual  Benefit,"  which  we  have  deduced  from  data 
furnished  in  their  last  Annual  Report,  may  be  observed  by  Table  VIII. 

TABLE     VIII. 

CoiIPAEISOX  OP  THE  At'TCAL  NuJIBEE  OP  DeATHS  COEKESPOXDING  TO  EACH  OXE  HUNDRED 

Predicted,  oe  peeceutage  op  the  actual  numbek  ox  peobable,  at  decejojial  ages. 


Class  I.  alone, 

Class  I.  and  II.  combined,.  .  . 

Class  II.  including  VI., 

Class  in.  alone, 

Class  IV.  alone, 

Class  V.  including  VII., .... 

Whole  Company, 

"Whole  Co.,  "  CarUsle  Table," 
"Mut.  Benefit,"  "  " 


li5-25. 


90 
90 
89 
662 
595 
431 
145 
157 
191 


25-35. 


77 
86 

127 
85 

215 

337 
99 
99 

101 


35-45. 


61 
05 
80 
90 
156 
159 
73 
74 
80 


45-35. 


66 
67 
71 
90 
79 
201 
73 
88 
84 


55-65. 


98 
95 
83 
99 
44 
0 
89 
101 
72 


65-75. 


71 

83 

195 

0 

122 

0 

80 

92 

103 


All  sges. 


70.53 
74.07 
89.06 
95.62 
130.43 
230.62 
82.02 
87.52 
87.62 


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MUTUAL  LIFE  IKSURANCE  COMPANY  OF  KEW-YOEK.  23 

We  first  observe  tlie  extraordinary  mortality  at  younger  ages  in  the 
South  and  California,  -while  in  Class  I.  alone,  as  well  as  that  in  Classes  I.  and 
II.  combined^  it  is  in  aU  cases  less  than  that  called  for  by  the  Company's 
Table.  Some  of  these  results  are  plotted  in  the  accompanying  diagram 
No.  3,  by  reference  to  which  the  comparisons  may  be  more  readily  made. 
The  horizontal  line  marked  100,  refers  to  the  predicted  number  of  deaths, 
while  the  curved  lines  mark  the  actual  number  corresponding  at  decennial 
ages.  We  thus  see  how  very  large  the  per  centage  of  actual  deaths  has 
been  at  young  ages,  and  how  small  comparatively  between  the  ages  of 
thirty  and  sixty,  after  which  the  actual  and  probable  results  seem  to  ap- 
proximate very  nearly  to  each  other,  both  according  to  our  own  Experience 
and  that  of  the  "  Mutual  Benefit,"  in  a  remarkable  manner.  One  thing 
must  still  be  borne  in  mind,  however,  that  from  the  scantiness  of  the  data, 
at  very  young  or  old  ages,  the  corresponding  results  are  not  entitled  to  the 
same  degree  of  confidence  as  those  for  intervening  ages. 

I  have  plotted  in  Diagram  No.  4,  the  "  Number  out  of  which  one 
person  may  be  expected  to  die"  each  year,  not  only  from  the  foregoing 
Tables,  but  also  according  to  some  of  the  more  celebrated  and  reliable  Eng- 
lish Life  Tables.  The  numbers  at  the  bottom  of  this  diagram  represent  the 
various  ages  from  15  to  75,  or  of  the  younger  and  older  lives  insured,  while 
those  on  the  side  of  the  diagram  represent  the  numbers  out  of  which 
one  person  may  be  expected  to  die  annually.  In  order  to  find  the  number 
according  to  any  life  table,  we  must  note  the  points  of  intersection  of  the 
curve  corresponding,  with  the  horizontal  lines,  at  each  age.  For  instance, 
at  the  age  of  20,  we  find  that  our  curve  of  General  Experience  intersects 
the  horizontal  lines  between  the  numbers  one  hundred  and  twenty-six  and 
one  hundred  and  twenty-seven,  (126.60,)  which  means  that  out  of  every 
one  hundred  and  twenty-six  persons  living  at  the  age  of  20,  one  will  die 


24  ■  REPORT    ON    EXPERIENCE. 

each  year,  according  to  our  own  Experience.  Our  theoretical  curve  at  the 
same  age  intersects  the  horizontal  lines  between  the  numbers  one  hundred 
and  forty  and  one  hundred  and  forty-OTie,  (140.8,)  which  means  that  accord- 
ing to  Mr.  Gill's  Table,  we  will  have  but  one  death  annually  out  of  every 
one  hundred  and  forty-one  persons  living  at  the  age  of  20.  At  the  age  of 
40,  according  to  the  same  Table,  one  death  will  occur  annually  out  of  each 
seventy-nine  persons  (79.1)  living,  while  it  has  been  found  by  the  General 
Experience  of  this  Company,  that  we  will  have  but  one  death  annually  out 
of  every  hundred  and  seven  (107.25)  persons  living  at  that  age.  By  thus 
noting  for  each  age,  the  number  out  of  which  one  person  will  die,  according 
to  any  Table  of  Mortality,  and  then  connecting  the  various  points,  we  are 
enabled  to  determine  the  curve  corresponding  to  the  given  table. 

By  an  examination  of  the  same  diagram  we  may  also  observe  the  very 
great  comparative  value  of  life  between  the  ages  of  30  and  60,  while  below 
the  age  of  30,  and  particularly  below  that  of  25,  this  value  rapidly  becomes 
less  than  we  had  anticipated  from  any  previous  observations.  The  excess- 
ive mortality  at  younger  ages  is  perhaps  owing  to  the  fact  that  in  this 
country  young  men  are  induced,  by  a  spirit  of  enterprise,  to  enter  upon 
the  anxieties  and  cares  of  active  business  life  too  early.  Besides,  perma- 
nent habits  of  life  and  character  are  rarely  formed  below  the  age  of 
twenty-five;  while  the  effects  of  neglected  education,  bad  habits,  or  un- 
governable passions,  then  begin  to  manifest  themselves,  and  all  serve  to 
render  the  risks  on  very  young  lives  less  desirable  than  those  of  somewhat 
older  ages. 

By  comparing  the  difi'erent  curves  we  may  ascertain  more  clearly  than 
by  any  other  method,  the  peculiar  type  of  our  own  curve  of  General  Expe- 
rience. We  also  observe  that  this  curve  approaches  more  nearly  to  the 
"Actuaries"  than  to  our  own,  or  to  that  of  any  English  Life  Table,  unless  it 


INT?  4. 

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^A^es. 


MUTUAL  LIFK  INSUEAKCE  COMPANY  OF  NEW-YORK. 


26 


be  tliat  of  tte  Experience  among  members  of  "  Friendly  Societies,"  accord- 
ing to  Eatcliffe,  Neison,  or  Finlaison.* 

By  reference  to  tlie  following  diagram,  No.  5,  stowing  tbe  number  out 
of  wHcli  one  person  will  die  according  to  tlie  unadjusted  Experience  among 
members  residing  in  Classes  I.  and  II.  covnhined^  we  find  in  the  comparative 
security  of  life  at  different  ages,  the  apparent  anomaly  of  two  points  of 
maxima  and  two  of  minima^  namely,  at  ages  27  and  42  for  maxima,  and  at 
24  and  34  for  minima.  In  otter  words,  tlie  value  of  life  or  chance  of  living 
during  the  ensuing  year^  increases  from  tbe  age  of  24  to  27,  decreases 
from  this  latter  age  to  tbat  of  34 ;  again  rapidly  increases  from  the  age 
of  34  to  that  of  42,  after  which  the  value  again  rapidly  decreases,  and  with 
considerable  regularity  to  the  close  of  life. 

I  cannot  think  that  this  anomaly  is  entirely  owing  to  the  scantiness 
of  the  data  from  which  our  Experience  was  deduced.  The  same  pecu- 
liarity was  first  noted  by  Mr.  Finlaison,  in  his  Eeport  on  the  Mortality 


*  The  annual  rate  of  mortality  among  members  of  Friendly  Societies  between  the 
ages  of  16  and  75,  and  also  among  the  members  of  this  Company  between  the  same  ages, 
may  be  seen  by  the  following  Table. 


No.  of  Lives. 

Deatbs. 

Annual  Rate 
of  Mortality 

Friendly  Societies,  RatcliflPe, .... 

Do.               Neison, 

Do.                Finlaison,  .  .  . 

Mut.  Life,     General  Experience, 

Do.         Class  I.  alone, 

621,472 

1,135,522 

3,930,613 

68,606 

46,555 

6,049 

13,563 

48,621 

749 

438 

0.9733 
1.1944 
1.2370 
1.0917 
.9408 

An  Actuary  in  England  once  remarked,  that  the  rate  of  mortality  stated  to  prevail 
among  members  of  Friendly  Societies,  Avas  almost  the  same  as  saying  that  -the  working 
classes  were  immortal !  But  we  find  that  the  rate  of  mortality  among  members  of  this 
Company  residing  in  Class  I.  is  less  than  that  by  either  of  the  above  observations,  which 
are  based  upon  persons  selected  from  among  the  Uitc  of  the  working  classes,  and  who  were 
supposed  to  have  the  lowest  rate  of  mortality  known. 


26  KEPOET    ON    EXPKBIENCE. 

observed  among  Government  male  annuitants,  published  in  1829.  He 
found,  among  males,  that  tbe  point  of  greatest  security  in  life  was  about 
the  age  of  13 — decreasing  afterwards  to  the  age  of  23,  then  increasing  to 
the  age  of  34,  after  which  it  decreased,  but  so  slowly,  that  at  the  age  of  48, 
the  value  of  life,  or  cliance  of  living  during  the  ensuing  year,  was  somewhat 
greater  t\&n  at  the  age  of  23 ;  after  the  age  of  48  the  value  rapidly 
decreased  untn  the  close  of  life.  These  results  were  somewhat  confirmed  by 
M.  Quetelet,  from  observations  made  in  the  kingdom  of  Belgium.  .  And 
also  by  ]Mr.  Neison  in  his  valuable  "  Contributions  to  Vital  Statistics,"  who 
found  that  this  peculiarity  occurred  among  members  of  "  Friendly  Societies," 
and  varied  with  different  occupations.  Thus  among  agricultural  laborers  the 
value  of  life  is  greater  at  the  age  of  30  than  at  23.  Among  country  work- 
men, not  laborers^  the  value  is  less  at  the  age  of  19  than  at  25,  and  again 
less  at  30  than  at  the  age  of  32 — ^somewhat  similar  to  our  own  experience. 
Among  clerks  there  are  also,  in  the  value  of  life,  two  points  of  maxima, 
namely,  ages  35  and  4Y,  and  two  of  minima,  28  and  44 ;  while  among  bakers 
there  are  three  points  of  each,  namely,  ages  22,  38,  and  54  for  the  maxima, 
and  ages  18,  31,  and  49  for  the  minima.  I  also  find  (from  data  furnished  in 
their  last  Annual  Report)  that  the  Experience  of  the  "  Mutual  Benefit" 
shows  the  same  anomalies,  as  may  be  seen  by  reference  to  the  diagram  No. 
5,  having,  in  the  value  of  life  among  their  assured,  two  points  of  maxima, 
namely,  ages  31  and  40,  and  two  points  of  minima,  namely,  ages  21  and  36. 

Such  anomalies'are  not  observed  when  the  observations  are  made  among 
miscellaneous  communities  of  men,  women,  and  children,  but  seem  to  be 
peculiar  to  certain  classes  of  persons,  and  no  doubt  similar  facts,  at  different 
ages,  might  be  deduced  from  observations  among  female  lives  alone.  Va-- 
rious  explanations  have  been  offered  by  such  men  as  Quetelet,  Prof.  Bucha- 
nan, etc.,  but  which  would  be  out  of  place  here. 


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ftj                A?               ss                eo               6S               70                15 

tAffes. 


MUTUAL  LIFE  INSUBANCE  COMPANY  OF  NEW-YOBK. 


27 


Expectation  of  Life. 

Pertaps  the  most  interesting  results  of  Table  VII.  are  contained  in  the 
column  headed  "  Expectation  of  Life,"  by  which  we  may  find  for  every  age 
the  aftertime  life.,  or  the  number  of  years  which,  taking  one  person  with 
another,  we  may  expect  to  live.  By  means  of  the  following  table  we  may 
compare  these  numbers  from  our  own  Tables,  with  those  according  to  some 
of  the  more  celebrated  English  Tables  of  Mortality. 


TABLE     X. 

Expectation  or  Life  according  to  diffeeent  Tables  of  Moetaxitt. 


i 

e 

s 

9 

1^ 

it 

€ 

a 

I'd 

W| 

¥^ 

't-6 

H 

Carlisle. 

II 
WW 

11 

<w 

Park's  Ekglisu 
Life. 

English 
Friundlt 

Societies. 

si 

£  J 
11 

WW 

Massa- 
chusetts. 
1855. 
Elliott 

No.l. 

No.  2. 

20 

40.16 

42.75 

38.45 

41.49 

41.46 

41.06 

.... 

39.88 

39.99 

40.92 

43.77 

41.40 

39.9 

20 

30 

33.13 

36.00 

32.18 

34.43 

34.34 

33.98 

33.68 

33.13 

33.31 

33.70 

36.61 

34.82 

34.0 

30 

40 

26.33 

28.94 

25.71 

27.28 

27.61 

27.40 

25.94 

26.57 

26.43 

26.41 

29.33 

27.20 

27.9 

40 

50 

19.74 

21.56 

19.40 

20.18 

21.11 

20.83 

18.99 

20.03 

19.87 

19.40 

22.19 

19.96 

21.3 

50 

60 

13.65 

14.55 

13.56 

13.77 

14.34 

16.06 

12.88 

13.59 

13.60 

13.29 

15.69 

13.83 

15.0 

60 

TO 

8.54 

8.64 

8.55 

8.54 

9.18 

9.84 

8.11 

8.52 

8.55 

9.09 

10.21 

9.23 

9.4 

70 

We  here  find  that  our  Adjusted  Experience  gives  a  higher  Expectation 
of  life  at  all  ages,  than  the  Company's  theoretical  table,  and  also  higher 
than  any  English  table  below  the  age  of  YO,  except  the  "  Friendly  Socie- 
ties "  according  to  JSTeison,  which  is  uniformly  higher  at  all  ages.  At  and 
above  the  age  of  70,  the  Expectation  by  several  English  tables  is  higher 
than  that  shown  by  our  own  Experience. 


28 


REPORT    OX    EXPERIENCE. 


COMPARATIVI;   MOKTALITT  IN   ENGLAND   AND   IN   THE   NoKTHEEN  UnITED 

States. 

In  a  Keport  upon  tte  Experience  in  1851,  Mr.  Gill  made  a  comparison 
of  the  actual  rate  of  mortality  among  members  of  this  Company  residing  in 
the  Northern  States,  with  that  according  to  the  experience  of  English  Com- 
panies. I  have  extended  that  comparison  so  as  to  include  our  present 
results  for  fifteen  years,  together  with  the  rate  of  mortality  amongst  the 
members  of  the  Mutual  Benefit  life  Insurance  Company  of  Newark,  for 
twelve  years,  as  published  in  their  last  Annual  Report.  We  may  thus  com- 
pare the  relative  mortality  among  assured  lives  in  this  country  and  in  Eng- 
land, at  different  ages. 


TABLE     IX. 

COMPAEISON    OF    THE    AnTSXJXL    RaTE    OF    MoETAXITT    IX    ENGLAND    AND    IX    THE 

NoETHEEX  United  States. 


ESOLISH  COMPASIBS. 

Mutual  Life  Insubancx  Coxpant  or  N.  T. 

"  Mutual 

Benefit" 

Experience. 

12  years. 

N.  T.  State 

Census, 

1865. 

First  year  of 
Assurance. 

Total  Expe- 
rience to  1888. 

Classes  I.  and  II.  combined. 

Class  L  alone. 

Whole 
Company. 

8  years. 

15  years. 

15  years. 

15  years. 

A 

B 

O 

D 

H 

P 

a 

H 

15-25 
25-35 
35-45 
45-55 
65-65 
65-'?5 

.5844 

.8872 

1.3181 

2.6755 

3.4060 

.7910 
1.1002 
1.6140 
2.9433 
5.1769 

.7433 

.8633 

1.2512 

2.8011 

8.9802 

.6838 

.8182 

.8059 

1.1783 

2.7298 

4.5252 

.68 

.73 

.76 

1.16 

2.79 

3.85 

1.10 

.94 

.91 

1.28 

2.55 

4.34 

1.3363 
.9652 
1.0027 
1.2372 
1.8544 
4.9327 

.80 

.11      i 
1.04 
1.47 
2.10 
4.08 

MUTUAL  LIFE  INSUEANCE  COMPANT  OF  NEW- YORK.  29 

The  first  column  (A)  contains  the  annual  rate  of  mortality  among 
members  of  English  Companies  during  their  first  year  of  assurance,  or 
when  the  effect  of  selection  was  greatest.  Column  B  contains  the  annual 
rate  of  mortality  among  members  of  the  same  Companies  after  their  first 
year,  or  when  the  effect  of  selection  is  supposed  to  have  diminished.  Co 
lumns  C,  D,  E,  and  F  show  the  annual  rate  of  moi-tality  among  members  of 
this  Company  according  to  Experience ;  while  column  G  shows  the  I'ate 
amongst  all  the  members  of  the  "  Mutual  Benefit"  for  twelve  years. 
Column  H  contaias  the  rate  of  mortality  which  I  have  deduced  from  the 
last  Census  of  the  State  of  New-York,  but  the  Report  itself  is  so  badly 
arranged,  at  least  in  regard  to  mortality  statistics,  that  I  place  no  reliance 
upon  the  numbers  in  this  column. 

Theoretically,  the  rate  of  mortality  among  members  of  the  American 
Companies  should  be  greater  than  that  shown  by  column  A,  but  somewhat 
less  than  that  of  column  B,  "We  find,  however,  the  rates  shown  by  columns 
D  and  F  are  greater  below  the  age  of  35  than  those  in  column  B,  while  above 
that  age  they  are  somewhat  smaller,  and  also  that  the  rates  shown  in  column 
E,  for  which  alone  our  Table  of  Mortality  was  strictly  intended,  are  less  at 
all  ages  than  that  in  column  B,  while  for  some  ages  they  are  even  less  than 
those  shown  by  column  A.  The  Experience  of  the  "Mutual  Benefit"  also 
shows  an  unusual  degree  of  mortality  at  younger  ages,  while  at  the  middle 
and  older  ages  the  rates  are  somewhat  less  than  those  in  column  B. 

From  this  we  may  see  that  the  fear  expressed  by  Mr.  Gill,  in  the 
Report  referred  to,  that  the  mortality  in  this  country  above  the  age  of  55 
would  prove  to  be  greater  than  that  obtaining  among  similar  classes  in 
England,  is  not  justified  by  the  results  of  more  extended  Experience.  On 
the  contrary,  the  fear  now  seems  to  be  that  the  mortality  at  younger  ages 
may  be  greater  than  that  anticipated,  as  we  have  already  seen. 


80  EEPOET    ON    EXPERIENCE. 


General  Observations  on  the  Results  op  the  Company's  Experience 

The  very  favorable  results  in  the  Experience  of  tliis  Company  may  be 
attributed  to  two  principal  causes,  namely,  the  influence  of  selection^  by 
which  persons  in  sound  health  only,  are  admitted  as  members  of  the  Com- 
pany, and  the  fact  that  among  these  members  are  to  be  found  so  many 
married  men,  or  heads  of  families. 

The  value  of  selection  in  this  Company  has  not  yet  been  ascertained. 
It  has  been  found  in  England,  however,  that  the  value  of  life  among  per- 
sons selected  with  the  greatest  care,  although  at  first  greater  than,  yet 
gradually  approximates  to,  the  value  among  similar  classes  taken  from  the 
community  at  large.  Whatever  benefit  we  may  have  derived  from  judi- 
cious selection  should  not  be  considered  as  clear  profit,  but  should  be  set 
oMde  in  order  to  meet  that  depreciation  in  the  value  of  life,  which,  in  process 
of  time,  must  be  expected  among  members  of  long  standing.  In  other 
words,  although  the  deaths  heretofore  have  been  fewer  in  number  than 
those  predicted  by  standard  Tables  of  Mortality,  we  should  be  prepared  for 
the  contingency,  when  present  members  become  older,  of  having  at  some 
future  time,  an  JExperience  just  the  reverse  of  the  present. 

The  favorable  influence  of  marriage  upon  the  value  of  life  has  been  long 
conceded,  but  has  never  been  numerically  measured^  I  believe,  until  very 
recently,  when  Dr.  WiUiam  Farr,  r.R.S.,  read  a  paper  before  the  British 
Association  for  the  Advancement  of  Social  Science,  on  the  "  Influence  of 
Marriage  upon  the  French  People."  Some  of  his  results  have  been  arranged 
in  the  following  Table. 


LIBRA  U  Y 

UNIVEliSITY  OF 

CALIFUKNIA. 


/ 


MUTUAL  LIFE  INSURANCE  COMPANY  OF  NEW-YORK. 


81 


COMPAEATIVE    MORTALITY    AMOXG   THE    MaEEIED    AND    SiXGLE    US'   FeANCE,    1851. 


Ages. 

ANKUAL  MOBTALITT  among  ZACH  10,000  FEBSONS  UVINQ. 

Number  of  deaths  among 

Single,  corresponding  to 

each  100  among  the  married 

Husbands. 

Bachelors. 

wives. 

Spinsters. 

Bachelors. 

Spinsters. 

Under  20 

293 

67 

.... 

71 

23 

.... 

20-30 

65 

113 

93 

82 

174 

88 

00-40 

71 

124 

91 

103 

170 

113 

40-50 

100 

177 

100 

138 

172 

138 

50-60 

183 

295 

163 

235 

161 

144 

eo-Yo 

354 

499 

354 

498 

141 

141 

By  this  Table  we  observe  that  tlie  mortality  among  husbands  at  the 
younger  ages,  is  excessively  high  ;  while  the  annual  mortality  among  bache- 
lors above  the  age  of  twenty  is  from  74  to  41  per  cent  greater  than  that 
among  husbands. 

May  not  this  hold  good,  to  a  greater  or  lesser  extent,  in  the  United 
States? 

The  very  large  number  of  lapses  (other  than  by  death  or  expiration) 
which,  in  this  Company,  is  much  greater  in  proportion,  than  among  the 
English  Companies,  no  doubt  also  exerts  a  great  influence  upon  the  fore- 
going results.  Should  these  lapses  in  future  materially  decrease,  we  may 
expect  an  mcrease  in  the  rate  of  mortality.  • 

Before  going  further,  it  may  be  well  to  remark  that  the  Table  of  Mor- 
tality now  used  by  the  Company,  and  upon  which  all  rates  of  premium  etc. 
are  based,  was  constructed  by  your  former  Actuary,  the  late  Prof.  Gill, 
in  a  manner  fully  described  by  him  in  his  introduction  to  "  Assurance 


32  REPORT    ON    EXPERIENCE. 

Tables,"  Mr.  Gill  submitted  bis  plan  to  some  of  tbe  most  experienced 
Actuaries  in  England,  wbo  gave  it  their  unqualified  approval,  and  no  doubt, 
it  "was  the  best  table  for  this  country  which  could  have  been  framed  from 
information  then  obtainable.  It  is,  however,  entirely  arbitrary,  as  far  as 
regards  the  value  of  life  in  the  United  States,  being  a  mere  digest  of  the 
results  of  English  observations.  It  is  beautifully  graduated,  and  reflects 
great  credit  upon  the  skill  of  its  author.  "We  have  already  seen  that  its 
predictions  have  been  more  than  sufficient  to  cover  the  results  of  actual 
practice.  Mr.  Gill  remarks,  at  the  end  of  the  description  referred  to 
above :  "  It  is  believed  that  this  Table  gives  a  more  accurate  representation 
of  the  value  of  the  class  of  assured  lives  in  England^  than  any  other  now 
extant.  It  will  of  course  require  to  be  modified  for  the  United  States, 
whenever  dements  sufficiently  rdiable  can  be  procured."  We  can  not  rely 
upon  the  results  of  any  Federal  or  State  census  in  this  country,  for  the 
purposes  of  Life  Insurance,  and  besides  it  is  very  doubtful  whether  a  Table 
of  Mortality  deduced  from  observations  made  upon  a  miscellaneous  com- 
munity, of  men,  women,  and  children,  will  ever  represent  with  entire  satis- 
faction, the  value  of  life  amongst  assured  lives,  who  are  in  many  respects 
a  peculiar  class.  Hence  for  the  purpose  of  modifying  or  correcting  our 
own  Table  of  Mortality,  elements  sufficiently  reliable  can  only  be  obtained 
from  the  Experience  of  our  own  or  similar  Life  Insurance  Companies. 

For  this  reason,  I  have  bestowed  great  care,  and  no  small  labor,  in 
deducing  from  this  Company's  Experience,  results  which  are  as  accurate, 
complete,  and  reliable  as  possible  ;  confident  that  if  such  observations  are 
continued,  we  will  soon  have  the  requisite  data  for  framing  a  reliable 
American  Table  of  Mortality,  and  which  will  be  an  accurate  representation 
of  the  relative  value  of  life  amonotst  the  class  of  assured  lives,  at  the  different 
ages.     The  importance  to  this  Company  of  such  a  table  cannot  be  too 


MUTUAL  LIFE  INSUEANCE  COMPANY  OF  NEW-YOEK.  88 

highly  estimated,  as  affording  the  only  means  by  which  the  scale  of  pre- 
miums can  be  equitably  adjusted,  or  by  which  the  present  value  of  the 
Company's  contingent  resources  and  liabilities,  in  a  financial  statement,  may 
be  correctly  ascertained.  Such  a  table,  in  fact,  being  absolutely  essential 
for  the  proper  solution  of  all  questions  depending  upon  the  duration  of 
human  life. 

At  the  present  time,  it  may  be  safely  said,  that  the  comparatively 
limited  Experience  of  this  Company,  even  when  the  very  large  number  of 
lives  exposed  to  mortality  is  considered,  will  scarcely  furnish  results  upon 
which  we  may  place  implicit  reliance — at  least,  not  sufficient  to  justify 
any  change  in  the  present  rates. of  premium.  At  the  same  time,  however, 
confirmed  as  they  are  by  those  of  the  "Mutual  Benefit,"  our  pi-esent  results 
of  Experience  prove  that  the  Company's  theoretical  Table  of  Mortality 
does  not  fairly  represent  the  comparative  value  of  assured  lives  at  different 
age-s^  in  this  countiy.  And  consequently  that  our  rates  of  premium  are  not 
perfectly  adjusted,  being  at  some  ages  too  Zcw,  and  at  others  too  high,  for  the 
risks  which  they  are  intended  to  cover.  Should  these  present  results  be 
confirmed  by  future  Experience  sufficiently  extended^  a  modification  of  our 
table  rates  of  premium  will  no  doubt  be  necessary.  In  the  mean  time,  I 
would  respectfully  suggest  that  any  injustice  which  has  been  done  to  pre- 
sent members,  by  reason  of  the  unequal  graduation  of  premiums,  may  be 
obviated,  at  least  in  part,  by  introducing  results  of  Experience  in  such  a 
manner  as  to  modify  the  apportionment  of  each  future  dividend^  thus  making 
our  system  of  reversionary  dividends  the  fly-wheel  or  governor  of  the  vast 
machinery  of  Life  Insurance. 

The  fact  of  charging  at  any  age,  comparative  rates  of  premium  slightly 
too  high  or  too  low,  is  of  but  little  consequence  in  a  Ifutiial  Company, 
provided  we  have  the  means  of  making  a  just  compensation  to  the  original 


34  REPORT    ON    EXPERIENCE. 

contributors.  The  amount  of  sucli  excess  or  deficiency  in  tlie  rates  of  pre- 
mium, can  only  be  determined  by  tables  based  on  actual  Experience ;  while 
the  compensation  itself  may  be  effected,  as  we  have  already  seen,  by  a  slight 
modification  in  the  future  apportionments  of  reversionary  dividends. 

Respectfully  submitted  to  the  Board  of  Trustees,  by 

Sheppaed  Homans, 

Acttiar'y. 
New-Yoek,  Octoler  25t7i,  1858. 


./. 


